I’m gonna make ‘em an offer they can’t refuse

[sl6886]

Everyone recognizes this famous line from The Godfather

So, I read where a Manufacturing Group that calls themselves Consumers for Choice or something like that, and they’re reportedly lobbying the Biden Administration to enact something called the Natural Gas Act, where natural gas prices are capped. How convenient for the manufacturing sector. Now we read where they want Biden to step in and block all foreign sales of Natural Gas and Liquids.

I’ve written before about the government siding with the masses (free rent) which could spill over to the energy sector. So, I’m no real estate guru but I have to believe that the effects from everyone getting free rent will curtail supply. I have no doubt Biden will impose price controls on “energy speculators” profitting off the needs of the masses, and polluting the environment too.

Here’s my question: when price controls and export limits are imposed, how do the energy companies respond, and how does this resolve. Seems like this is going to be an election issue and, unbelievably, I could see the Democrats possibly winning the election if they give free energy to everyone. Someone enlighten me on what might happen? Just one more thing to worry about. Why can’t I be the kind of person that just buys Google.

[dan_s]

Everything Team Biden is doing is bad for consumers. Higher prices will cure higher prices if the industry is left alone. All higher taxes and the cost of compliance to new regulations will be passed on the consumers.
Also, banning exports will be very bad for the US trading balance and terrible for countries that rely on imports they get from the US. Europe's economy is going to be crushed this winter from higher energy prices. It will be destroyed if cut off from US LNG.
The price of firewood in the Northeast US will hit a record high this winter.

[CreativeEquity]

I think your concern is warranted. But longer term producers do have some leverage in the sense that they can keep output moderate and minimize future capex. So assuming a subsidy, consumers will be forced to ration not due to price but due to lack of supply. (This happened to me in California in the summer during hot spells in the form of rolling black outs.) Eventually we will come full circle and the corrupt bureaucrats will have to create incentives (rather than hurdles) for the producers to invest in future capacity. But the details and timing are anyone's guess.
And yes a bad situation for consumers and tax payers.

[Fraser921]

States often get excited when the federal government deigns to hand out taxpayer money in dribs and drabs, a billion here and a billion there. Yet the best source of money to pump into an economy is private funds, invested by private companies. Private investment grows an economy for everyone, providing jobs and stimulus throughout the economy. With the sad announcement yesterday that PennEast Pipeline is abandoning its project, Pennsylvania, in particular, will miss out on most of the $1.2 billion estimated price tag to build it. All those jobs, all that investment….poof! Gone. Thanks to anti-fossil fuel nutters.